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Government Units Continue To Enjoy IT Outsourcing

|About:Computer Sciences Corporation (CSC)

For someone who has been a regular buyer of a particular product or service, it is no longer surprising if they go to a certain vendor for their needs. Spanning across different industries, it can be said that being a regular customer sometimes has its advantages as you can be given discounts, free and complimentary items, and many different others. Thebusiness process outsourcing industry is of no exception to this situation. One can notice that when companies need a particular type of process done, most of the time, they already have an outsourcing solutions provider in mind. Reasons for this could vary because it is possible that such outsourcing solutions provider is actually known for that particular service or simply because business owners have already built a relationship with them as they have tapped their services before. However, with the outsourcing industry, advantages do not come in the form of free and complimentary items but there are still other means available, one of which is to offer discounts.

The outsourcing industry's market has already grown exponentially within the previous decade, now having a large population of solutions providers and quite an impressive amount of clients and business owners looking to outsource a part, if not all, of their processes. One of the industries that we have witnessed become a regular customer of outsourcing services is the public sector whose contracts that are being covers a longer period of time as compared to the other kinds of outsourcing clients.

There is a wide selection of outsourcing companies available in the market who can serve government offices, but quite a number of them still turn to certain outsourcing solutions providers for assistance. CSC (NYSE:CSC) is one of those companies who offer assistance to the public sector in conducting their agency processes, and one of those providers who get approached frequently. Recently, it was announced by Maricom, a company under CSC, that it has been awarded a contract by Centers for Medicare and Medicaid Services. The contract focuses on CSC's information technology solutions to be able to provide enterprise data services. Maricom has been a partner to this particular United States government office for almost 15 years, which is a great example of an aforementioned reason for being a regular customer of a solutions provider - having built a long-standing relationship with each other.

Another outsourcing company that recently sealed a deal with a government agency is G4S(LON:GFS). The outsourcing contract, which costs around 200 million pounds and will last for ten years, is bound to cover information technology solutions, among others, for the Lincolnshire Police Authority.

Most of the outsourced processes of government agencies are more inclined towards the IT outsourcing side; however another area that is common in public sector outsourcing is back office solutions. Government agencies are looking at the best way possible for them to provide efficient and quality work processes to better service their citizens and they have found that outsourcing actually works for them. The public sector is just one, and it is certain that there are other industries around the globe that also benefits from outsourcing.

Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: CSC